On Wednesday, investors in Tether, the most dominant stablecoin in the crypto market, pointed out a change in the stablecoin’s Terms of Service and Risk Disclosure which described that its USD reserves will be composed of loans issued by Tether, not solely by cash.

“Every tether is always 100% backed by our reserves, which include traditional currency and cash equivalents and, from time to time, may include other assets and receivables from loans made by Tether to third parties, which may include affiliated entities (collectively, “reserves”),” the altered Terms of Service read.

Investors were quick to point out the change on online forums including Reddit and requested a statement from Tether.

Speaking to CCN, Kasper Rasmussen, the director of marketing at iFinex, the parent company of Bitfinex, said that the changes were made several weeks ago and confirmed that the composition of the assets had changed.

What Does a Change in the Composition of Assets Mean For Tether and Crypto?

According to Rasmussen, the change was made several weeks ago and it was directly communicated to the customers of Tether through its official site.

The executive said that Tether often reviews its Terms of Services and Risk Disclosures to accurately portray the firm’s holdings and reserves.

Tether’s change in the composition of assets, which several analysts have suggested is a move to increase the profitability of the company, was made to reflect Tether’s growth and operations in a similar manner as other institutions in the sector.